NEW YORK / RankWire.AI / – Crude oil prices surged by more than 4% on Friday as Brent crude closed above $88 per barrel. Brent futures increased by $3.87, or 4.59%, ending at $88.10. Meanwhile, U.S. West Texas Intermediate gained $3.54, or 4.48%, to settle at $82.49. Both benchmarks hit their highest closing levels since mid-June. Brent rose approximately 16% over the week, marking its third consecutive weekly increase. WTI experienced a similar weekly rise, extending its winning streak to two weeks.
Market activity reflected a significant drop in commercial vessel traffic through the Strait of Hormuz, which handles a substantial portion of global oil and gas exports. On Thursday, only three commodity ships transited the waterway, the lowest daily count since May. On Wednesday, eleven vessels passed through. Prior to the current tensions, the daily average was nearly 125. No very large crude carriers or liquefied natural gas tankers crossed for the second day in a row, restricting key energy shipments from Gulf ports.
The oil market also responded to disruptions at regional shipping points. Iraq briefly halted crude loadings at the Basra terminal after a drone attack on a tanker, though operations later resumed. Additionally, two large crude carriers, each capable of holding about 2 million barrels, appeared outside Hormuz after departing the Gulf earlier this week. The decline in shipping activity coincided with the biggest one-day increases in crude futures this week. Energy prices broadly rose across international markets during Friday’s trading session.
Hormuz slowdown constrains regional oil flows
The International Energy Agency reported that Gulf oil exports increased by 6.5 million barrels per day in June, reaching a total of 16.1 million barrels daily. Despite this rise, exports remained significantly below the pre-conflict level of 24 million barrels per day. The increase was mainly driven by crude oil and condensate. Gulf production also grew by 3.5 million barrels per day, but overall output was still 11.4 million barrels below earlier levels, indicating that production and exports had not yet fully recovered.
The International Energy Agency also noted a 21 million barrel increase in global oil inventories during June. This marked the first monthly rise in four months. At sea, oil stocks grew by 117 million barrels, while onshore stocks declined by about 96 million barrels, with government stock releases accounting for 44 million of that decrease. Exports of refined products and liquefied petroleum gas from the Gulf remain below half of pre-conflict levels, though crude shipments recovered to nearly 75% of their previous rate.
Weekly rally boosts global crude benchmarks
According to the U.S. Energy Information Administration, Brent spot prices averaged $85 a barrel in June, down $22 from May. Prices dipped below $70 on July 1 but rebounded during the first half of July. The agency estimates that global oil inventories decreased by 5.1 million barrels per day in the second quarter. It also reported that June saw an average of 8.3 million barrels per day of production shut-ins, peaking at 11.2 million barrels per day in May.
Friday’s settlement pushed Brent $12.09 above its July 10 closing of $76.01. WTI ended the week $11.08 higher than its previous close of $71.41. These movements represented weekly increases of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major U.S. market sector to close higher on Friday. Both crude contracts settled near their intra-day highs, concluding a week characterized by strong price gains, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.